Today, Ukraine is on the path of comprehensive economic transformation. Under such conditions, improving the investment climate and increasing the efficiency of investment processes are a few of the main directions of public policy at the present stage.
Ukraine with its unique location in the center of the European market and cheap compared to developed European countries and at the same time, a sufficiently skilled and educated workforce may become an ideal place for investment in the near future against the backdrop of the global crisis. In addition, there is already a suitable infrastructure for this in many places in Ukraine, so the country has been and remains attractive for foreign investments.
Investment climate in Ukraine on a governmental level
According to President Volodymyr Zelensky, despite the challenges, during 2020 Ukraine, with the help of the business community, carried out historic reforms: adopted legislation on the introduction of a land market, increased the transparency of the tax system, supported business with affordable loans, began open privatization, and signed the first concession agreements. Also "Diya" was launched - a digital platform for businesses and citizens that has ranked Ukraine among the leading countries with digital passports and online services. Together, these actions are aimed at improving the investment climate in Ukraine in 2021.
The investment climate in Ukraine keeps improving steadily, which can be seen both from the governmental statements and international rankings. This makes it possible for foreign businessmen to invest safely and steadily increase benefits from their investments.
Doing business in Ukraine
In the Doing Business ranking compiled by the World Bank, Ukraine’s investment climate in 2021 deserved 64th place out of 190 countries. Moreover, experts also mention the eagerness to improve the economic situation, since Ukraine ranks second in terms of improving the business climate over the past 10 years.
Dozens of global giants have already trusted the Ukrainian market supported by foreign investors. Companies within Ukraine keep developing as well, which opens up opportunities for investment in local businesses. Among the foreign companies that operate in the Ukrainian business space, the following are worth mentioning:
- Bayer – the brand has built a seed processing plant to a value of $200 million;
- Cargill – $ 150,000,000-worth grain terminal provides modern and reliable storage of raw materials;
- Jabil – the electronics manufacturer has already built a second factory for $ 16 million.
Also, more and more participants from various industries are penetrating the Ukrainian market – such global giants as General Electric, IKEA, H&M, Ryanair, Decathlon. These and many other brands have trusted the Ukrainian economy. The investment climate in Ukraine with the growing demand for foreign products attracts other foreign investors as well, who are interested in the country's developed infrastructure and business development support.
What suits the business
- rapid economic recovery after the recession due to quarantine;
- controlled inflation;
- reduction of the discount rate;
- stable exchange rate of the national currency;
- simplification of foreign exchange transactions;
- liberalization of the land market;
- active implementation of state digital services.
Potentially, Ukraine can be one of the leading countries in Europe for foreign direct and portfolio investment. This is facilitated by its large domestic market, significant industrial and agricultural potential, as well as the profitability of Ukraine's geopolitical location at the crossroads of trade routes in Europe and Asia.